60% price increase within the same development?!

lilaczoey

Hi all,

My partner and I are thinking about buying a new build flat in North London. This is the final phase of the development and the building is still under construction. We know that prices in the area have gone up in the past couple of years (partly due to regeneration of the area), but we just checked the land registry and we were completely shocked by the price increase within the same development. Compared to flats from a previous phase (launched less than 2 years ago and just completed this summer), which are otherwise the same, the flats in the current phase are 50-60% more expensive!!

Am I the only one who thinks that this is ridiculous? Should I try to negotiate the price with the developer or should I just stay away from this madness?

Many thanks!!

Guest101

Im confused.


There's an asset for sale, you want it, but you don't like the price.


And your question is do you negotiate or stay away? You decide!

gregsayer

Guest101 wrote: »

Im confused.


There's an asset for sale, you want it, but you don't like the price.


And your question is do you negotiate or stay away? You decide!

I think the OP was looking for validation in their concern, just like you would if you went down the pub and the beer had doubled in price since you last went there.


personally I'd be concerned, have a look at the BBC news site, there are a few articles on there about the "London bubble" if you are only considering being in the property a few years, i wouldn't cough that much money after a hike like that, but if you are going to be there long term, you'll ride out the "market corrections"

Guest101

gregsayer wrote: »

I think the OP was looking for validation in their concern, just like you would if you went down the pub and the beer had doubled in price since you last went there. - No I wouldn't. I'd be surprised and decide I'd go a drink elsewhere. But that's a retail setting. A better example is a car (negotiations is more common)


personally I'd be concerned, have a look at the BBC news site, there are a few articles on there about the "London bubble" if you are only considering being in the property a few years, i wouldn't cough that much money after a hike like that, but if you are going to be there long term, you'll ride out the "market corrections"

It's not the concern that surprised me, its:


Option 1: negotiate
Option 2: Walk away


Yep, those are the two options if you don't like the price. Personally I'd never buy in London - but that doesn't help the OP in anyway.

davidmcn

Are you sure you're comparing like with like? e.g. there could be some form of shared equity arrangement so you're looking at the prices for, say, 75% shares.

lilaczoey

davidmcn wrote: »

Are you sure you're comparing like with like? e.g. there could be some form of shared equity arrangement so you're looking at the prices for, say, 75% shares.

I cannot be sure what the land registry records show, but there is a 50-60% increase in all the flats that's on the land registry.

The two phases are physically identical (the same plots and everything) except that the current phase is on the edge of the development so one side of that building doesn't face another building.

Fiveboy

We wanted a particular style of new build started to save and that one went up 15% within 1 year, which was like 40k, tried to negotiate but failed, as it was there most popular style of new build, so only wanted asking as they were confident they could get it, so we gave up on that dream and now got a cheaper new build.

I wonder what the price will be in the Final phase time will tell.

bouicca21

You really need to look at prices in the rest of the area as a whole to see if that sort of increase is reasonable or not. Sadly for buyers the London bubble still seems to be going strong.

ognum

Surly it's just a case of supply and demand, if the developer can sell the flats at a higher price that's what they will do, they are a buisness out to make a profit.

You have to decide whether the price is good or bad for the area. Look at sold prices in other streets and developments.

Of course try to negotiate the seller can always say no then it's your choice whether to walk away or up your offer.

In the south east you are very unlikely to find a property that is for sale for less than it was two years ago.

AnnieO1234

From my own experience, we purchased at the end of September. At Christmas that same year the same property with no front garden sold for 15% more than we paid. We are close to the m1 in Derbyshire with plenty of commuters but aren't at the same time in an affluent area. In fact, no one local to here would pay what we all paid to live on our new estate. Xxx

martinkatu5b

Hi, ive seen an increase from £130,000 (sold price in 2013) to £190,000, asking price for an identical flat next door in late 2015.
That is a 46% increase. They are likely to get £190000 or somewhere near to it, in my opinion based on sold prices of other flats along the road.
The condition of the flat looked pretty similar from the rightmove pictures
Also, increases in actual sold prices, from £90,000 to £130,000 (2012 to 2015) identical flats, same block. 44% increase.
So it is possible and definetely happening. These are quite extreme examples, but I think increases of 20 - 40 % are common.
Crazy thing - the rents have stayed the same.